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Thursday, June 25, 2015

Alberta increases province’s carbon levy to $30 in 2017

Alberta government announced plans to increase province’s carbon levy on January 1 from its current $15 per tonne
to $20, before a further hike to $30 in 2017. The hikes will coincide with a
near doubling of efficiency targets large polluters must meet. Companies will
also be required to reduce emissions by 20 per cent over time, compared with a
12-per-cent target today.

Government estimates the increased carbon levy would add 30 to 45 cents a barrel to
the cost of oil sands production and an extra $3.60 per megawatt-hour for
electrical utilities by 2017.

The Canadian Association of Petroleum Producers, which represents large oil sands
players, warned that its members were facing $800-million in added costs over
two years because of higher carbon levies and corporate taxes.

Greenhouse gas emissions from energy-rich Alberta amounted
to 267 megatonnes in 2013, or about 37% of Canada's total emissions, with the
federal government projecting that amount to grow to 287 Mt by 2020.